The local government bond channel of China's monetary policy

Source: Plos.org· Jinzhi Bai, Hanlin Xia, Lin Zhang· August 18, 2026
The local government bond channel of China's monetary policy

China's economic development and change are significantly influenced by local governments. By affecting the cost of borrowing for local governments, monetary policy can have an impact on their fiscal policies and, eventually, the actual economy. After providi…

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